If I lost 500,000 in one day would my account be frozen ?
Do stock brokers monitor client accounts losses ?
- Thread starter wic2021californiaxp
- Start date
*Spits beverage at screen*
If you buy $500,000 worth of stock with your own cash, why would they liquidate you? The most you can lose is $500,000, if all the stocks in yer account drop to 0 and you sell all those positions at 0. Even then, there is no reason for them to "liquidate" you.
How often does that ever happen, anyways?
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def
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Only if a margin deficit. If it is a $10,000,000 account with plenty of excess liquidity, no issue. The question the OP should be asking is "If I have a broker let me lose $500,000 - assuming negative equity, is my money safe there?"
Probably under the "Know your customer" rule. Same basic concept as a bartender refusing to serve a drunk. A lot more details to consider relating to the character and size of the account. There is also a concern that if you lose everything you might bring an action against them for continuing to pour the alcohol.
